Ethereum is currently trading above $2,200 as May progresses. It’s near the lower end of its recent trading range following another failed attempt to break through resistance. A lot of traders who were betting on a price increase towards $2,400 have closed those positions, and the price charts suggest we’ll likely see more sideways movement in the next few days.
Ethereum Price Analysis: The Daily Chart
Looking at the daily chart, Ethereum is still holding above its 100-day moving average, around $2,150 – which is currently the only encouraging signal. The upward trend that began in February is still in place, and the lower edge of that trend now acts as a support level around $2,100.
Ethereum has repeatedly tried to break through the $2,400 price level, but has been pushed back each time. The next significant resistance point is around $2,600, marked by the 200-day moving average, which also forms the upper limit of the current price channel.
For Ethereum’s price to start recovering, it first needs to consistently stay above $2,400 and then rise above its 200-day moving average. However, with the current market trends, achieving either of these seems difficult. If the price falls below $2,000, it would cause significant damage, and buyers will need to work hard to prevent that from happening.
ETH/USDT 4-Hour Chart
The price has fallen below a recent downward trendline, suggesting further declines. It’s currently testing support around $2,200, a level that has held steady in recent weeks. While the indicator measuring price momentum is relatively low, it hasn’t yet reached a point that would signal a likely price rebound.
Over the next few days, keep a close eye on the $2,200 level. If the price bounces back up from here, it suggests the short-term upward trend will continue, potentially leading to another attempt to reach $2,400. However, if the price falls below $2,200, it could drop to the $2,000-$2,100 support level, and ultimately, towards $1,800.
Sentiment Analysis
Ethereum exchange reserves recently dipped to a low of about 14.5 million ETH in late April, but have since risen slightly to 14.9 million ETH – an increase of around 400,000 ETH over the last few days. This increase started as the price of ETH neared $2,400 and has continued even as the price has fallen back from that high.
This indicates that some of the Ethereum being sent back to exchanges likely comes from people who bought it when prices were low in February and are now selling as the price reaches their desired profit point.
As a crypto investor, I’m still pretty optimistic overall. The amount of Ether available – around 14.9 million – is historically low, and we haven’t seen a change in the trend of Ether leaving exchanges. What’s interesting, though, is that exchange reserves have stopped falling and are now creeping up *right* at the price level where we’ve seen resistance – around $2,400. I don’t think that’s a coincidence, and it explains why breaking through that level has been so tough.
Currently, whenever the price tries to rise, some lower-cost owners sell a bit of their holdings, which meets the buying demand and prevents a significant price increase. This situation will probably continue until selling from these owners slows down, indicating they’ve finished selling, and the resistance around $2,400 weakens.
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2026-05-16 08:31